The Portfolio Management Processes are often seen as an end-to-end process with new project demand entering the portfolio as input and project deliverables as output of the process. But as a matter of fact this is not reflecting the reality. The project deliverables are the reason for driving a portfolio and running all these important projects. It is in the operations area where the benefits are realized proofing that we have chosen the right investments.
The operations of the project deliverables triggers new project demand according the 4 E's
- Enhance - make it better by including new functionality. This could trigger a new project to create a new version of the solution.
- Expand - make more usage out of the solution. In a complex environment (e.g. global organisation) a deployment project is needed.
- Exchange - use something else to fulfill the requirements. This usually leads to a new project
- Eliminate - the solution is not longer needed as the requirement is not there anymore. However to shurdown and off-board a running solution a project is needed
New project demand is created in the operations phase of a project and thereofore this phase is the missing link between the traditional end-to-end portfolio management and the holistic cycle approach.
The operations phase is also very important to mature the benefit management as we can measure if the projects are keeping what they have promised.